New Yorkers thought that when the city capped the number of licenses for for-hire vehicles ‘to prevent traffic congestion’ they were regulating Uber. The truth is they were doing Uber’s bidding by handing the ridesharing giant a tool to keep out competitors.
In New York there are a limited number of licenses, and those are busy working for Uber. New competitors have a hard time entering the market. Startup Revel thought they found a loophole that would allow them to compete against Uber in New York. But they were shut down by regulators in a bizarre process.